Looking at the cash flow they had $7m~ cash plus $3m~ shares...

Looking at the cash flow they had $7m~ cash plus $3m~ shares which will last about 2-3 quarters at the current burn.

The assets have to be worth a lot more than the market cap of $77m~ on the open market in a A$1,650 gold price environment.

MLX have a dominant position on the register at 25% and they have plenty of cash plus a cash flow positive tin mine. WGR is a $20m investment to them in a $300m~ cap company that is probably undervalued also given the state of the market.

MLX have sold out of a satellite recently.

Debt financing for mine development is too risky at this point for the banks.

So 2 ways this can go;

# MLX put the company on the market

or

# a 1:3~ rights issue at 12c~ = $16m to progress further (or placement to sophisticateds)

I'll back the placement/rts option.

17.5c seems ridiculous but not if you will have all the stock you want at 12c~ in 6 months.

Wild card is gold blasting through $2,000 that would bring the punters back to WGR.

Appreciate others thoughts.